Wednesday, March 25, 2009

Winners in the Downturn..... a sequel to the Great Economic Slowdown

Recently, I happened to hear an audio program called the Strangest Secret by Earl Nightingale, renowned author and motivational coach. The message was so striking, that I couldn’t resist listening to it again and again. I ended up hearing it 3 times which speaks for itself, as to how inspiring the message was to me.
      Through the ‘The Strangest Secret’, Earl Nightingale tells us that, every single person on earth has a desire to be successful, has a desire to establish themselves as the top 10% in their field, but that only very few people are able to reach the pinnacle. He explains that, if 100 people were to be studied at the age of 25, almost all of them want to be successful in their lives. But out of the same 100 people, when analyzed at the age of 65, only 1 will be rich, 4 would be financially independent, 57 would be broke and rest would fall in the middle class with no savings.
        Most of us conform to things that happen around us; we wake up in the morning and go to office – because everyone else does. We do almost everything that we do, because everyone else does. The antonym to courage is not cowardice but conformity. Successful people first visualize where they wish to go and then start their journey. This is not just a theory. If we look closely into the lives of successful people, we can see this is what actually happens.
       We had started off on recession and its impact on us and more importantly, on how it’s going to mould our lives over the next 25 years. I appreciate your willingness to learn more about the opportunities that would help us beat the recession curve and surge ahead. We have actually made a transition from the industrial age to the information age. We now realize that a job is the byproduct of the industrial age, while, entrepreneurship is the byproduct of the information age. We can confirm this if we analyze why people who came into the same profession earlier were paid higher during their appraisal or confirmation. Now that we have an option to learn about the information age and make a transition.
      One can actually see the job opportunities and the so called coveted seats in corporate narrowing down. We can definitely live in style when we are upward middle class – because we have the money in hand to spend on luxury. Continuing to be in a so called job will actually eat our time as we climb up the corporate ladder. We will not have quality time with our family and loved ones, and our lifestyles will start to droop. Life/style is actually Time/Money. No matter whichever job you take on, you will see this sword hanging above your neck.
      A lot of you, whose parents are living in different countries trying to raise money for your education and to maintain a good life, would have experienced this firsthand. Just think how meaningless our family lives would be, if we cannot be with our loved ones when it’s most required.
      We need to be in a self sustaining business or a system that will help us realize the togetherness of time and money. For those of you in their 40s its not too late and those in 20s its not too early to switch yourselves to a new and promising career. It would help us be a part of the next trillion dollar industry and make some significant contributions to our economy. Just like the TATA’s and Ambani’s, it’s not hard to believe that you may leave a legacy for the generations to come if you take the right decision now

Wednesday, March 18, 2009

The Global Economic Slowdown... Should we suffer or is there a way out?

I am kind of surprised to see the tremendous turmoil the recession has created in the lives of average middle class people like us. Even though we have a positively growing GDP, many people are cutting down on costs and improving their efficiencies. One thing I really doubt is: Is it really because of the recession that many companies are retrenching their resources or is it to keep the share prices ticking. I am no person to comment on the working of a company, but the fact remains that when a company lays-off people, its share price increases.

Common people, fearing that their money will sink, have started panicking; a trend which has not been seen for years. Consequently, more and more people have started looking for a second income through part-time jobs. They are willing to work 16 hours a day – the regular 9 hrs at office plus the additional part-time hours. This is the culture that the West have been following for almost half a century now. Multi-billionaires also point out that its highly secure, from the financial view point, to take up an additional job or a partime business.

To quote some words from Robert Kiyosaki’s book ‘Rich Dad Poor Dad’:
In 1923 a group of our greatest leaders and richest businessmen held a meeting at the Edgewater Beach Hotel in Chicago. Among them were Charles Schwab, head of the largest independent steel company; Samuel Insull, President of the world’s largest utility; Howard Hopson, head of the largest gas company; Ivar Kreuger president of the International Match Co, one of the worlds largest companies at that time. Leon Frazier, president of the Bank of International Settlements; Richard Whitney, President of the New York Stock Exchange, Arthur Cotton and Jesse Livermore, two of the biggest stock speculators; and Albert Fall a member of President Harding’s cabinet. Twenty Five years later nine of them (those listed above) ended as follows. Schwab died penniless after living for 5 years on borrowed money. Insull died broke living in a foreign land. Kreuger and Cotton also died broke. Hopson went Insane. Whitney and Albert Fall were just released from Prison. Fraser and Livermore committed suicide. (THE RICHEST BUSINESSMEN, pg 74)

This was after the Great Economic Depression of 1929. There is a lesson to be learnt from the above stated fact. Even though we haven’t made a significant contribution to the economy like these people, have you ever thought what our lives would be like 25 years from now, if we cannot do something to beat the recession? What if the current situation is worse than the recession of 1981-82 or 1973-75 or even bitter than the 1929 experience? But its also a notable fact that the maximum number of billionaires have risen in the post recession period.
Its time, to stop talking and start doing. Try to think for yourselves, what can be done to beat the recession? What is it that could bring us out of this tornado? Research for yourselves, the industries that have beat the recession in their entire lifetime, keep yourselves up to date on what the economists and billionaires predict  and ultimately put them into practice….
That’s enough ‘food for thought’ until the next edition. These were strictly my view points. Post your comments to let me know what you think…..